Nathaniel Clyne has been linked with a move to Manchester United (Picture: Getty Images)

Manchester United’s hopes of signing Nathaniel Clyne in January have taken a blow as Southampton moved to offer the England defender a bumper new contract to stay at St Mary’s.

The Observer are reporting the Saints have opened talks with the right-back’s representatives and hope to have a new deal agreed before Christmas.

United boss Louis van Gaal had hoped bring the 23-year-old to Old Trafford but may have to look for alternative options if the former Crystal Palace youngster decides to commit his future to the South Coast club.

Clyne has just over 18 months left on his current contract and manager Ronald Koeman says he is confident the Saints will be able to agree terms with the player.

‘If I have to be worried about those kind of rumours, then I will be worried every day and I don’t like that,’ the Dutchman said. ‘I like my life and I like to be positive. It’s no issue.’

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Southampton host Manchester United on Monday night and will be keen to get their Champions League hopes back on track after suffering back-to-back losses against Manchester City and Arsenal.